Reserves increase in the USA is restraining oil growth
This morning oil prices demonstrated yesterday's rapid growth, but by the evening its rate sharply fell. The reason for this was the publication of the U.S. Department of energy report, according to which the U.S. oil reserves are increased by 1.57 million barrels last week, while experts expected their decrease.
In the last few days, oil prices had been steadily increasing due to the OPEC+ pact about the “black gold” production cuts. During yesterday's trading session Brent oil has reached $55 a barrel for the first time in the last month.
Investors expected further oil price growth, based on data from the American Petroleum Institute (API), according which the oil reserves in the U.S. fell by 1.83 million barrels last week. However, their hopes were dashed because the official figures published by the U.S. Department of Energy were directly opposite to the API forecasts.
Oil production in the United States has increased to 9.2 million barrels a day. This is a record from January 2016. Experts fear that further expansion of the oil reserves in the USA will negate the positive effect achieved through the OPEC covenant about production cuts.